I, AUSTRALIA
PRIME MINISTER
FOR PRESS 9 JUNE 1978
AUSTRALIA/ EEC NE-OYrTIONS
The Prime Minister of Australia, Mr Malcolm Fraser, said today
that he had received a report from the ' Minister for Special Trae
Representations', Mr R. V. Garland, on the outcome of trade tal.: s
with Commissioners of the European Community held today and
yesterday in Brussels.
Mr Fraser said that the Community's response to Australia's
proposals for improving the present imbalance of trading
opportunities with the Community was neither reasonable nor
acceptable. It did not represent a serious response to the
central thrust of Australia's proposals to get even marginally
better access for beef and other agricultural products, as well
as some mitigation of the Community's massive export subsidisation
of agricultural surpluses which is a ersely affecting Australia's
export opportunities in third markets.
Mr Fraser pointed out that Australia * as not seeking to balance
its trade with the Community, which -was heavily in the Community's
favour. Rather the objective was to reduce the imbalance of
trading opportunities. The present trading relationship whereby -he
Community has virtual across the board access to the Australian
market for exports of industrial products and even some
foodstuffs cannot be balanced with a situation where the
Community's market is virtually closed to a wide range of Australian
agricultural exports.
Mr Fraser said that Australia, as a major world trader, regards
an improvement in trade opportunities and in the balance of the
trading relationship with the world's largest trading
bloc as an essential basis upon whizh to sustain our
future trade growth. Such an improwement is not only valid in the
context of Australia/ European relations, but it is also valid f: r
the European consumers who are forced to pay much higher than wcrld
prices for their foodstuffs. In this regard the recent decision by
President Carter to substantially inzrease the levels of beef
imports into the United States is a cassic example of the way
in which improved access for primary products to the markets
of the developed countries can assist in the fight against inflation.
I 2
The Community's response on our major items of' concern,
in particular beef, is that Australia should await results' in
the MTN. Mr Fraser said that Australia accepted that many
of our problems could only be resolved in the MTN and that
the Australian Government attached tkhe highest priority to
the achievement of a successful MTN package with a balanced
outcome on both industrial and agricultural products.
To this end, we had completely re-appraised our position and
are now prepared to participate on the basis of a 40 percent
formula cut on tariffs provided full reciprocity for our
exports is achieved.
Australia would hope that all major participants will
similarly re-appraise their MTNP approach especially the
Meanwhile Australia continues to see as essential the -need for
serious and sustained bilateral negotiations with the
Community to provide the neceSsary basis for the successful
resolution of our problems on the MTN. Such a basis can-not
exist unless the Community is prepared to respond in a
meaningful way to our proposals.
Mr Fraser said that the Community's response on beef,
based as it is on the vague and ill-defined " joint disciplines"
concept, does not offer real -: rospects of achieving reasonable
or secure access to the Commnity market. Australia's beef
proposals involve global accescs for about 4 percent of the
Community's total consumption of 6.5 million tonnes.
Mr Fraser pointed out that Australia had been in negotiations
with the Community since June last year when he and President
Jenkins agreed that wide ranging discussions should be held
on the totality of Australia's trading and ecoftomic relations
with the Community. Mr Howard, the Minister then responsible,
conducted a round of discussions with Commissioners of' the
EEC and Ministers in Member States. These d-iscussions allowed
Australia's concerns to be fully explained and
explored. Mr Howard had left with the Commission at the end
of last October a Note settin; g out substantive and concrete
proposals for improveme. nts.
Only now, more than seven months after Australia's detailed
written proposals were conveyed formally to the Community, has
the Community been able to respond. Even now, its consideration
of' our detailed proposals has been such that it has not even
been able to give us a written response.
Mr Fraser said that after all these detailed and lengthy
discussions the Community's response was disappointing and
completely inadequate. It does not in any way help to improve
the present unsatisfactory state of trading relationships
between Australia and the Comz'anity. Indeed, it raises serious
doubts about the Community's -willingness to respond in any
meaningful way to Australia's proposals. 13
Mr Fraser said that Australil could not accept the
continuation of the present situation. A more careful
response is required if satisfactory solutions to our p ' roblems
are to be reached. Wi-thout such solutions the Commrunit~ y
will force Australia to re-examine the totality of
Australia' s commercial and trading policies with the
Community. There should be no mistake or misunderstanding
about Australia's resolve in -this regard. Mr Fraser said
that Mr Garland would be reporting in detail to him and
his Cabinet colleagues in Canberra. He will convey the
considered response of the Australian Government to the
Commission next week.